The price you set for your products/services can be one of the most important decisions you make. Setting your prices too high or too will seriously limit your business growth. But what if the very pricing strategy you carefully selected is the thing that actually works against you?

My guest today is John Wallace, founder of TS3. Since John comes from a background in sales the last thing I thought I’d hear from him was to suggest business owners throw out their pricing strategy. When I heard John suggest this during a meeting in Essex, I wanted to know more.

Was this some kind of weird Jedi trick to get more sales? Was this another “pay me what you think I’m worth” approach that I’ve had a dozen times over and ends up in zero credibility?

As it turns out, it was neither of those things.

Instead, what John was advocating is to have a more intelligent conversation about your products/services – one that focuses on value rather than price.

Understanding the Difference Between Cost and Value

Knowing the difference between cost and value is important.

  • The cost is the amount you spend in order to produce and deliver your products/services.
  • The value is what the customer believes your product or service is worth to them.

Since we all have different needs and desires, the perception of value can vary from one person to another. It’s this difference in perception that I was to discover was at the heart of John’s argument on removing your pricing structure from any sales conversation.

Only when we know the difference between cost and value are we in an optimum position to set price.

To be fair, John isn’t saying completely ditch your pricing strategy. Your pricing strategy helps to work as a guide in a sales conversation. It can only ever be a guide because at the time you set your prices you hadn’t spoken with your prospect and learned the value they would place on your product or service.

Your pricing strategy can be a like a comfort blanket, says John. It can give you confidence when starting out, but ultimately it ends up holding you back on profitability.

This is a thought-provoking episode. If you’re literally just starting out with your business, you may want to still work to your pricing strategy for the moment – at least until you pick up confidence. Do though listen to the episode because John does a really great job of driving home the message about value. This alone will help you gain greater confidence in sales meetings.

On the other hand, if your business is further along definitely give this approach a go. Not only will you bring in some higher paying clients, but you’re also likely to close more deals.

Hey, Thanks for Listening

To share your thoughts:

To help out the show:

  • Leave an honest review on iTunes. Your ratings and reviews really help and I promise to read each one.
  • Subscribe on iTunes or Stitcher.

Special thanks to John Wallace for joining me this episode. Until next time!

Author: Clive Maloney

Admin bar avatar
Clive is founder and small business coach at Get Real About Business. He specialises in teaching business owners how to make more money, more easily, while enjoying a business and lifestyle that reflects their priorities. Clive's articles have appeared in many publications. He currently hosts the Get Real About Business Podcast in which he shares the mic with world-class experts from around the world to discuss marketing and business growth strategies.

Today's Guest

John Wallace

Founder and business enabler at TS3, John works to develop your business through clear differentiation and recognition of your brand and the value you bring to your customers’ success.

Website: TS3.uk.com

Subscribe

You'll Learn

  • Why having a pricing strategy might be holding you back
  • Getting out of the trap of charging for your time
  • How value is a matter of perspective
  • check
    Understanding the total cost of ownership
  • check
    Price versus value
  • check
    Removing your pricing structure to open up dialogue
  • check
    Why USPs are intrinsically difficult to create
  • check
    Locking your competitors out on price
  • check
    The transition from selling to customers buying
  • check
    Taking a customer-centric approach
  • check
    How free giveaways are counter-productive

Resources

Note: Some of the resources below may be affiliate links, meaning I get paid a commission (at no extra cost to you) if you use that link to make a purchase.

Recent Episodes

Leave a Reply

The price you set for your products/services can be one of the most important decisions you make. Setting your prices too high or too will seriously limit your business growth. But what if the very pricing strategy you carefully selected is the thing that actually works against you?

My guest today is John Wallace, founder of TS3. Since John comes from a background in sales the last thing I thought I’d hear from him was to suggest business owners throw out their pricing strategy. When I heard John suggest this during a meeting in Essex, I wanted to know more.

Was this some kind of weird Jedi trick to get more sales? Was this another “pay me what you think I’m worth” approach that I’ve had a dozen times over and ends up in zero credibility?

As it turns out, it was neither of those things.

Instead, what John was advocating is to have a more intelligent conversation about your products/services – one that focuses on value rather than price.

Understanding the Difference Between Cost and Value

Knowing the difference between cost and value is important.

  • The cost is the amount you spend in order to produce and deliver your products/services.
  • The value is what the customer believes your product or service is worth to them.

Since we all have different needs and desires, the perception of value can vary from one person to another. It’s this difference in perception that I was to discover was at the heart of John’s argument on removing your pricing structure from any sales conversation.

Only when we know the difference between cost and value are we in an optimum position to set price.

To be fair, John isn’t saying completely ditch your pricing strategy. Your pricing strategy helps to work as a guide in a sales conversation. It can only ever be a guide because at the time you set your prices you hadn’t spoken with your prospect and learned the value they would place on your product or service.

Your pricing strategy can be a like a comfort blanket, says John. It can give you confidence when starting out, but ultimately it ends up holding you back on profitability.

This is a thought-provoking episode. If you’re literally just starting out with your business, you may want to still work to your pricing strategy for the moment – at least until you pick up confidence. Do though listen to the episode because John does a really great job of driving home the message about value. This alone will help you gain greater confidence in sales meetings.

On the other hand, if your business is further along definitely give this approach a go. Not only will you bring in some higher paying clients, but you’re also likely to close more deals.

Hey, Thanks for Listening

To share your thoughts:

To help out the show:

  • Leave an honest review on iTunes. Your ratings and reviews really help and I promise to read each one.
  • Subscribe on iTunes or Stitcher.

Special thanks to John Wallace for joining me this episode. Until next time!

Author: Clive Maloney

Admin bar avatar
Clive is founder and small business coach at Get Real About Business. He specialises in teaching business owners how to make more money, more easily, while enjoying a business and lifestyle that reflects their priorities. Clive's articles have appeared in many publications. He currently hosts the Get Real About Business Podcast in which he shares the mic with world-class experts from around the world to discuss marketing and business growth strategies.

Today’s Guest

John Wallace

Founder and business enabler at TS3, John works to develop your business through clear differentiation and recognition of your brand and the value you bring to your customers’ success.

Website: TS3.uk.com

Subscribe

Apple Podcasts | Android | Stitcher

You'll Learn

  • Why having a pricing strategy might be holding you back
  • Getting out of the trap of charging for your time
  • How value is a matter of perspective
  • checkUnderstanding the total cost of ownership
  • checkPrice versus value
  • checkRemoving your pricing structure to open up dialogue
  • checkWhy USPs are intrinsically difficult to create
  • checkLocking your competitors out on price
  • checkThe transition from selling to customers buying
  • checkTaking a customer-centric approach
  • checkHow free giveaways are counter-productive

Resources

Note: Some of the resources below may be affiliate links, meaning I get paid a commission (at no extra cost to you) if you use that link to make a purchase.

Recent Episodes

Leave a Reply